Contingent Resources Estimates for the Galoc Oil Field from Mid-Galoc Area

Source: www.gulfoilandgas.com 7/14/2015, Location: Asia

Nido Petroleum Limited is pleased to provide the results of an independent contingent resources assessment of the mid-Galoc area of the Galoc oil field as at 30 June 2015, undertaken by Gaffney Cline and Associates (‘GCA’).

Details of Mid-Galoc Contingent Resources Assessment
GCA has completed its Independent Reserves and Resources assessment on the mid Galoc area of the Galoc oil field in accordance with the SPE/WPC/AAPG/SPEE Petroleum Resource System (SPE PRMS) Definitions and Guidelines and the ASX Listing Rules including Listing Rules 5.25 to 5.44 where applicable.

The tables and information below summarize the Reserves and Resources for the mid-Galoc area of field as at 30 June 2015 in accordance with these Requirements.

Technical Review
The mid-Galoc oil accumulation is a northerly extension of the Galoc Field, located in Block C1 of Service Contract 14 (SC 14C1) in the NW Palawan basin, offshore Philippines and operated on behalf of the SC 14C1 Joint Venture by Galoc Production Company (‘GPC’).

The mid-Galoc area is being considered as a potential development project using horizontal drilling and sub-sea completion technology.

The Operator, GPC, has recently completed an extensive technical review of the existing geological and production data from the Galoc field incorporating the mid-Galoc area, resulting in new, integrated static and dynamic reservoir models which have underpinned the resource assessment undertaken by GCA.

Contingent Resources
The preliminary development plans for mid-Galoc are based on drilling two horizontal, sub sea development wells tied back to the Galoc Field Floating Production Storage and Offloading (FPSO) facilities. Crude oil sales will be by ship-to-ship transfer from the FPSO to a shuttle tanker. The development plan is still being optimized, and has not yet been submitted to the Philippine authorities for approval.

As part of its resource assessment work, GCA reviewed various data, interpretations and models provided by GPC and conducted its own analyses of these data sets and models, amending them where necessary. The assessment conducted by GCA, in arriving at its oil in-place estimates, comprised geophysical analyses, a review of depth conversions and seismic attribute analyses, review and update of the geological model, petrophysical analyses and a review of fluid contacts.

A summary of the range of in-place oil volumes for the mid-Galoc area (MGA) based on the sensitivity modeling performed by GPC.

GCA concluded its work with a review of the main Galoc Field production history, and GPC’s latest simulation model forecasts and history-matching results. These were used as a basis for generating the production profiles that formed the basis of GCA’s resource estimates.

Oil production was assumed to start on 1st January, 2018. An uncertainty range in initial per well oil rate between 2,500 stb/d and 3,000 stb/d, attributable to variable reservoir performance, was assumed. Production decline rates in the range of 19% to 23% per year were applied; consistent with the well performance observed in the Galoc Phase I development wells.

The estimates of recoverable volumes for the mid-Galoc development were based on a two well development and assuming an economic limit of 1,200 stb/d for the field. Recovery factors range between 12% and 13% and are typical of reservoir performance under a pressure depletion mechanism.

GCA has considered production forecasts based on the Operator’s preliminary development plan to be classified as Contingent Resources under the sub-category ‘Development Pending’.


Related Categories: Formation Evaluation  General  Geological, Geophysical  Geophysical Contractors  Mud Logging  Reservoir Engineering & Recovery Methods  Seismic survey  Well Completion, Logging, Workover 

Related Articles: Formation Evaluation  General  Geological, Geophysical  Geophysical Contractors  Mud Logging  Reservoir Engineering & Recovery Methods  Seismic survey  Well Completion, Logging, Workover 


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